Iranian Ship Convoy Moves Toward Yemen, Alarming US Officials
Source: The Hill
U.S. military officials are concerned that Iran's support for Houthi rebels in Yemen could spark a confrontation with Saudi Arabia and plunge the region into sectarian war.
Iran is sending an armada of seven to nine ships — some with weapons — toward Yemen in a potential attempt to resupply the Shia Houthi rebels, according to two U.S. defense officials.
Officials fear the move could lead to a showdown with the U.S. or other members of a Saudi-led coalition, which is enforcing a naval blockade of Yemen and is conducting its fourth week of airstrikes against the Houthis.
Iran sent a destroyer and another vessel to waters near Yemen last week but said it was part of a routine counter-piracy mission.
What's unusual about the new deployment, which set out this week, is that the Iranians are not trying to conceal it, officials said. Instead, they appear to be trying to "communicate it" to the U.S. and its allies in the Gulf.
Read more: http://thehill.com/policy/defense/239295-us-officials-concerned-about-iranian-convoy-headed-towards-yemen
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
Agnosticsherbet
(11,619 posts)A regional war between Iran and Saudi Arabia, even if we don't get involed, will make a deal impossible.
bananas
(27,509 posts)Iran has long resisted any deal.
Now that they are receiving anti-aircraft missiles from Russia, they will be able to make lots of nuclear weapons without fear of attack.
Agnosticsherbet
(11,619 posts)The roots of the conflict betwen Shia and Suni Islam goes almost back to the beginning.
Iwould say the Russians are doing their best to stop the negotiations. This will put Iran firmlyin their camp, if Putin decides to take down NATO.
Plucketeer
(12,882 posts)must be positively GIDDY with anticipation!
Comrade Grumpy
(13,184 posts)Ooh, somebody might interfere with our bombing and droning the shit out of Yemen, along with our good buddies the Saudis.
Meanwhile, AQAP is seizing more territory. Saudi Arabia says it isn't going to bomb them, just the Houthis.
So now we're allied with Saudi Arabia and AQAP at the same time we're droning AQAP. My head hurts.
roamer65
(36,745 posts)There isn't anything we can do to stop it at this point. Two big bullies on the same block are gonna fight, no matter what happens.
George II
(67,782 posts)
christx30
(6,241 posts)That's sissified book learnin' stuff.
JonLP24
(29,322 posts)The big one is Syria (the proxy war of all proxies) with Iran/Iraq backing up the Alawite Shia regime with Saudi, Qatar, & Kuwait backing up the Sunni rebels. Mainly the Wahabbists as Saudi Wahhabism is the foundation of the Al-Qaeda, Taliban, ISIS, etc ideology in-terms of how they enforce it on the domestic population. Even the US backed the Taliban (formally branded & organized by the Pakistan ISI) in the early 90's because they were an enemy of my enemy & also they favor privatization -- big capitalists, hate populists. You have this going on in Syria, Iraq, Lebanon, Bahrain, & now Yemen.
-----
It would be troublesome but perhaps acceptable for the House of Saud to promote the intolerant and extremist Wahhabi creed just domestically. But, unfortunately, for decades the Saudis have also lavishly financed its propagation abroad. Exact numbers are not known, but it is thought that more than $100 billion have been spent on exporting fanatical Wahhabism to various much poorer Muslim nations worldwide over the past three decades. It might well be twice that number. By comparison, the Soviets spent about $7 billion spreading communism worldwide in the 70 years from 1921 and 1991.
This appears to be a monumental campaign to bulldoze the more moderate strains of Islam, and replace them with the theo-fascist Saudi variety. Despite being well aware of the issue, Western powers continue to coddle the Saudis or, at most, protest meekly from time to time.
For instance, a Wikileaks cable clearly quotes then-Secretary of State Hillary Clinton saying "donors in Saudi Arabia constitute the most significant source of funding to Sunni terrorist groups worldwide." She continues: "More needs to be done since Saudi Arabia remains a critical financial support base for al-Qaeda, the Taliban, LeT and other terrorist groups." And it's not just the Saudis: Qatar, Kuwait and the United Arab Emirates are also implicated in the memo. Other cables released by Wikileaks outline how Saudi front companies are also used to fund terrorism abroad.
Evidently, the situation has not improved since Hillary Clinton was secretary of state. Late last year, Vice President Biden caused a stir by undiplomatically speaking the truth at an event at Harvard's Kennedy School of Government, saying:
"Our allies in the region were our largest problem in Syria. The Turks were great friends... [and] the Saudis, the Emirates, etcetera. What were they doing?.... They poured hundreds of millions of dollars and tens of tons of weapons into anyone who would fight against Assad -- except that the people who were being supplied, [they] were al-Nusra, and al-Qaeda, and the extremist elements of jihadis who were coming from other parts of the world."
More recently, the Saudi role in promoting extremism has come under renewed scrutiny. Calls for declassifying the redacted 28 pages of the 9/11 congressional commission have been getting stronger. And statements from the lead author of the report, former Florida Sen. Bob Graham, suggest they are being hidden because they "point a very strong finger at Saudi Arabia as the principal financier" of the 9/11 hijackers. He has been unusually explicit, "Saudi Arabia has not stopped its interest in spreading extreme Wahhabism. ISIS...is a product of Saudi ideals, Saudi money and Saudi organizational support, although now they are making a pretense of being very anti-ISIS."
http://www.huffingtonpost.com/dr-yousaf-butt-/saudi-wahhabism-islam-terrorism_b_6501916.html
Bahrain's history is interesting, a lot like Yemen. The main thing is it isn't so much about ideology but about the geopolitics of oil. The Eastern side of Saudi Arabia is where the bulk of the oil is at which is just how the US likes it -- next to the coast but if the Shia majority gained independence as Saudi Arabia has periodic levels of unrest they may nationalize the oil production. Like Bahrain has a lot of oil which is why they have had a complicated history.
Bahrain uprisings of 2011 (Wiki) -- the bold part is my input
Human rights
The state of human rights in Bahrain was criticized in the period between 1975 and 2001. The government had committed wide range violations including systematic torture.[57][58] Following reforms in 2001, human rights improved significantly[59] and were praised by Amnesty International.[60] They allegedly began deteriorating again at the end of 2007 when torture and repression tactics were being used again.[55] By 2010, torture had become common and Bahrain's human rights record was described as "dismal" by Human Rights Watch.[61] The Shia majority have long complained of what they call systemic discrimination.[62] They accuse the government of naturalizing Sunnis from neighbouring countries[63] and gerrymandering electoral districts.[64]
<snip>
Foreign relations
Bahrain hosts the United States Naval Support Activity Bahrain, the home of the US Fifth Fleet; the US Department of Defense considers the location critical to its attempts to counter Iranian military power in the region.[63] The Saudi Arabian government and other Gulf region governments strongly support the King of Bahrain.[63][68] Although government officials and media often accuse the opposition of being influenced by Iran, a government-appointed commission found no evidence supporting the claim.[69] Iran has historically claimed Bahrain as a province,[70] but the claim was dropped after a United Nations survey in 1970 found that most Bahraini people preferred independence over Iranian control.[71] (US took Saudi Arabia's side over Iran on the issue of Bahrain as part of the terms that ended the 70s embargo)
<snip>
Arrests and widening crackdown
By the early hours of 17 March, over 1,000 protesters had been arrested,[126]:34:50 including seven leading opposition figures, among them Abduljalil al-Singace, Abdulwahab Hussain, Ibrahim Sharif and Hasan Mushaima.[127] In an interview with Al Jazeera before his arrest, the latter had claimed protesters were gunned down despite offering only non-violent civil resistance.[128][129] In response to the government's reaction to the protests, a number of top Shia officials submitted their resignations, including two ministers, four appointed MPs and a dozen judges.[130][131] Protesters in several villages ignored the curfew and gathered in streets only to be dispersed by security forces,[11]:149[128] which allowed funerals as the only means of public gathering.[126]:45 Arrested protesters were taken to police stations where they were mistreated and verbally abused.[11]:151
Later in the day surgeon Ali al-Ekri was arrested from the still surrounded Salmaniya hospital and by April another 47 health workers had been arrested.[126]:43[127] Their case drew wide international attention.[132] Patients at the hospital reported getting beaten and verbally abused by security forces and staff said patients with protest related injuries were kept in wards 62 and 63 where they were held as captives, denied health care and beaten on daily basis to secure confessions.[126]:35–6, 42 Physicians for Human Rights accused the government of violating medical neutrality[133] and Médecins Sans Frontières said injured protesters were denied medical care and that hospitals were used as baits to snare them. The government of Bahrain dismissed these reports as lacking any evidence[134] and said forces were only deployed in the hospital to keep order.[135]
On 18 March, the Pearl Monument in the middle of the Pearl Roundabout was demolished on government orders[136] and a worker died in process.[126]:47 The government said the demolition was in order to erase "bad memories"[137] and "boost flow of traffic",[136] but the site remained cordoned by security forces.[138] Security checkpoints set up throughout the country were used to beat and arrest those perceived to be anti-government,[11]:150 among them was Fadhila Mubarak arrested on 20 March due to listening to 'revolutionary' music.[139] On 22 March, the General trade union supported by Al Wefaq suspended the general strike[140] after it had announced extending it indefinitely two days previously.[11]:155 Meanwhile over a thousand mourners took part in funeral of a woman killed in crackdown in Manama and human rights activists reported that night raids on dissent activists had continued.[140]
<snip>
In April, as a part of the crackdown campaign,[154] the government moved to destroy Shia places of worship, demolishing thirty five mosques. Although many had been standing for decades, the government said they were illegally built,[126]:45 and justified destroying some of them at night as to avoid hurting people's psychology.[154] Among the destroyed was the Amir Mohammed Braighi mosque in A'ali which was built more than 400 years ago.[154] On 2 April, following an episode on Bahrain TV alleging it had published false and fabricated news, Al-Wasat, a local newspaper was banned briefly and its editor Mansoor Al-Jamri replaced.[11]:390[155] The next day over 2,000 participated in a funeral procession in Sitra and chanted anti-government slogans, and in Manama opposition legislators staged a protest in front of United Nations building.[156]
Torture marks on the body of Karim Fakhrawi before his burial on 12 April
On 9 April, human rights activist Abdulhadi al-Khawaja and his two sons-in-law were arrested.[157][158] His daughter Zainab who subsequently underwent a hunger strike to protest the arrests,[159] said al-Khawaja was bleeding after getting beaten unconscious during the arrest.[160] That month alone, four protesters had died due to torture in government custody including journalists Karim Fakhrawi and Zakariya Rashid Hassan al-Ashiri.[11]:430 The government initially denied such reports[159] and accused human rights activist Nabeel Rajab of fabricating photos, however a HRW researcher and a BBC reporter who had seen one body prior to burial stated they were accurate.[161][162] Five prison guards were subsequently charged with a protesters death.[163]
(it goes on but you get the idea -- I want to highlight this though)
orture
Main article: Torture during the Bahraini uprising (2011–present)
Torture during the uprising has been described in many human rights reports as being widespread and systematic. 64%[248] of detainees (1,866 individuals) reported being tortured.[249]:37 At least five individuals died as a result.[11]:225 During the uprising detainees were interrogated by three government agencies, the Ministry of Interior (MoI), the National Security Agency (NSA) and the Bahrain Defence Force. According to the Bahrain Independent Commission of Inquiry (BICI) report, physical and psychological abuse was inflicted by the NSA and the MoI on a systematic basis and in many cases amounted to torture.[11]:298 The BICI report describes the systematic use of techniques similar to those used during the repression of the 1990s uprising as indicative of "a systemic problem, which can only be addressed on a systemic level".[11]:299–300
Use of mercenaries
For decades,[250] the Bahraini authorities have been recruiting Sunni foreign nationals in the security forces from different countries, including Egypt,[251] Jordan, Syria, Iraq (Ba'athists), Yemen and Pakistan (Baluch) in order to confront any popular movement that usually comes from the Shia majority.[252] In 2009, Bahrain Centre for Human Rights claimed that 64 percent of National Security Agency employees were foreigners and that only 4 percent were Shia.[253] Pakistanis mainly from Balochistan make up 30 percent of Bahrain security forces and are usually recruited via the Fauji Foundation.[254] Bahrainis,[252] Al Jazeera English,[254] Hindustan Times,[255] Time magazine[256] and Bruce Riedel[250] referred to them as mercenaries. The Bahraini government admits it recruits foreigners in security forces, although it does not describe them as mercenaries. "We have no mercenaries. We have workers who have been serving at the Ministry of Interior for many years. Some of them have been naturalized and their children are working at the ministry", said Rashid bin Abdullah Al Khalifa, the Minister of Interior.[257]
http://en.wikipedia.org/wiki/Bahraini_uprising_of_2011#cite_note-mileqpt-359
Saudi Arabia - economy
From 2003–2013 "several key services" were privatized—municipal water supply, electricity, telecommunications—and parts of education and health care, traffic control and car accident reporting were also privatized. According to Arab News columnist Abdel Aziz Aluwaisheg, "in almost every one of these areas, consumers have raised serious concerns about the performance of these privatized entities."[238] The Tadawul All Share Index (TASI) of the Saudi stock exchange peaked at 16,712.64 in 2005, and closed at 8,535.60, at the end of 2013.[239] In November 2005, Saudi Arabia was approved as a member of the World Trade Organization. Negotiations to join had focused on the degree to which Saudi Arabia is willing to increase market access to foreign goods and in 2000, the government established the Saudi Arabian General Investment Authority to encourage foreign direct investment in the kingdom. Saudi Arabia maintains a list of sectors in which foreign investment is prohibited, but the government plans to open some closed sectors such as telecommunications, insurance, and power transmission/distribution over time.
<snip>
Statistics on poverty in the kingdom are not available through the UN resources because the Saudi government does not issue any.[245] The Saudi state discourages calling attention to or complaining about poverty. In December 2011, the Saudi interior ministry arrested three reporters and held them for almost two weeks for questioning after they uploaded a video on the topic to YouTube.[246][247][248] Authors of the video claim that 22% of Saudis may be considered poor (2009).[249] Observers researching the issue prefer to stay anonymous[250] because of the risk of being arrested.
http://en.wikipedia.org/wiki/Saudi_Arabia
One thing I should point about their economy is it is built off of the backs of imported labor which Kuwait & Qatar does too & so does Pakistan & apparently Libya does too now. So does the US Department of Defense in Southwest Asia as detailed here -- http://www.uclalawreview.org/?p=6348
Saudi Arabia's treatment of foreign workers under fire after beheading of Sri Lankan maid
<snip>
"Some domestic workers find kind employers who treat them well, but others face intense exploitation and abuse, ranging from months of hard work without pay to physical violence to slavery-like conditions," said Nisha Varia from Human Rights Watch. There are about 1.5 million foreign maids in Saudi Arabia, including about 375,000 Sri Lankans.
An International Labour Organisation report last week warned that an estimated 52.6 million domestic workers around the world lack legal rights and protections. But Varia said Saudi Arabia posed unique problems because legal protections were weaker and the chance of access to justice more remote.
<snip>
Amnesty said it had grown alarmed at the "disproportionate" number of migrant workers in Saudi Arabia being executed. "As with Rizana Nafeek, nearly all migrant workers in Saudi Arabia are at great risk if they end up in the criminal justice system," said Amnesty's Saudi Arabia researcher, Dina el-Mamoun.
"In many cases, they're subjected to whole trials where they can't understand the proceedings, which are conducted solely in Arabic, and without translation. They are often not given access to lawyers or to consular assistance."
Mamoun said poor workers from the Indian subcontinent, south-east Asia and Africa did not have the contacts and influence needed to balance a justice system that was weighted against them. "All countries should be advising their residents who might be thinking of working in Saudi Arabia of the risks of mistreatment in detention, of an unfair trial and even of execution. The risks are very real and could be deadly." Amnesty said it knew of more than 120 people – mostly foreign nationals – on death row.
http://www.theguardian.com/world/2013/jan/13/saudi-arabia-treatment-foreign-workers
I'm getting off-track but the point I'm making is they're just fine with a corrupt kleptocracy abusing & exploiting its people but when the people begin to gain control of their government--Yemen is a little more complicated as it is like 3 or 4 way civil war--which is why they assist the corrupt dictatorships
Yemen
Human rights
Main article: Human rights in Yemen
The government and its security forces, often considered to suffer from rampant corruption,[262] have been responsible for torture, inhumane treatment, and extrajudicial executions. There are arbitrary arrests of citizens, especially in the south, as well as arbitrary searches of homes. Prolonged pretrial detention is a serious problem, and judicial corruption, inefficiency, and executive interference undermine due process. Freedom of speech, the press, and religion are all restricted.[263] Journalists who tend to be critical of the government are often harassed and threatened by the police.[222] Homosexuality is illegal, punishable by death.[264]
Since the start of the Shia insurgency, many people accused of supporting Al-Houthi have been arrested and held without charge or trial. According to the U.S. State Department International Religious Freedom Report 2007, "Some Zaydis reported harassment and discrimination by the Government because they were suspected of sympathizing with the al-Houthis. However, it appears the Government's actions against the group were probably politically, not religiously, motivated".[265]
The U.S. Committee for Refugees and Immigrants reported several violations of refugee and asylum seekers' rights in the organization's 2008 World Refugee Survey. Yemeni authorities reportedly deported numerous foreigners without giving them access to the United Nations High Commissioner for Refugees, despite the UN's repeated requests. Refugees further reported violence directed against them by Yemeni authorities while living in refugee camps. Yemeni officials reportedly raped and beat camp-based refugees with impunity in 2007.[266]
<snip>
Human trafficking
Main article: Human trafficking in Yemen
The United States Department of State 2013 Trafficking in Persons report classified Yemen as a Tier 3 country,[272] meaning that its government does not fully comply with the minimum standards against human trafficking and is not making significant efforts to do so.[273]
Yemen officially abolished slavery in 1962,[274] but slavery is still being practiced.[275]
http://en.wikipedia.org/wiki/Yemen#Mutawakkilite_Kingdom_of_Yemen
Syria has a brutal humans rights violator but the reason why the US has occasionally mentioned in interest in regime change is because they've nationalized oil production since the 60's. So has our other "enemies" for the most part. Iran kicked out BP then came the 1954 Iran coup. We typically sanction countries that nationalize their oil production. The National Iranian Oil Company is why, has nothing to do with nukes. Iran gives their religious minorities a second class citizen status and have one of the most screwed up blasphemy laws in the world -- but unlike our gulf allies, they are far more labor friendly.
Labor force
After the revolution, the government established a national education system that improved adult literacy rates: as of 2008 85% of the adult population was literate, well ahead of the regional average of 62%.[152][153] The Human Development Index was 0.749 in 2013, placing Iran in the "high human development" bracket.[45]
Annual economic growth of above 5% is necessary to absorb the 750,000 new labor force entrants each year.[154] Agriculture contributes just over 11% to GDP and employs one third of the labor force.[62] As of 2004 the industrial sector, which includes mining, manufacturing, and construction, contributed 42% of GDP and employed 31% of the labor force.[62] Mineral products, notably petroleum, account for 80% of Iran’s export revenues, even though mining employs less than 1% of the labor force.[62] In 2004 the service sector ranked as the largest contributor to GDP (48%) and employed 44% of workers.[31] Women made up 33% of the labor force in 2005.[155] Youth unemployment (aged 15–24) was 29.1% in 2012, resulting in significant brain drain.[31][156]
Personal income and poverty
See also: Social class in Iran, Targeted social assistance reform and "Justice shares"
Unemployment rate, per-capita income growth and minimum wage (2000-2009).
GNI per capita:
Iran in 2010: $4,520 nominal; (2012: $13,000 PPP)[157]
Higher GNI per capita compared to Iran
Lower GNI per capita compared to Iran
Iran is classed as a middle income country and has made significant progress in provision of health and education services in the period covered by the Millennium Development Goals (MDGs). In 2010, Iran's average monthly income was about $500 (GNI per capita in 2012: $13,000 by PPP).[31][157][158][159] A minimum national wage applies to each sector of activity as defined by the Supreme Labor Council. In 2009 this was about $263 per month ($3,156 per year).[160] The World Bank reported that in 2001, approximately 20% of household consumption was spent on food, 32% on fuel, 12% on health care and 8% on education.[161] Iranians have little debt.[162] Seventy percent of Iranians own their homes.[163]
After the Revolution, the composition of the middle class in Iran did not change significantly, but its size doubled from about 15% of the population in 1979 to more than 32% in 2000.[164] The official poverty line in Tehran for the year ending March 20, 2008, was $9,612, while the national average poverty line was $4,932.[165] In 2010, Iran's Department of Statistics announced that 10 million Iranians live under the absolute poverty line and 30 million live under the relative poverty line.[166]
Social security
See also: Social Security Organization and Healthcare in Iran
Although Iran does not offer universal social protection, in 1996, the Iranian Center for Statistics estimated that more than 73% of the Iranian population was covered by social security.[167] Membership of the social security system for all employees is compulsory.[168]
Social security ensures employee protection against unemployment, disease, old age and occupational accidents.[169] In 2003, the government began to consolidate its welfare organizations to eliminate redundancy and inefficiency. In 2003 the minimum standard pension was 50% of the worker’s earnings but no less than the minimum wage.[169] Iran spent 22.5% of its 2003 national budget on social welfare programs of which more than 50% covered pension costs.[170]
Employees between the age of 18 and 65 years are covered by the social security system with financing shared between the employee (7% of salary), the employer (20–23%) and the state, which in turn supplements the employer contribution up to 3%.[171] Social security applies to self-employed workers, who voluntarily contribute between 12% and 18% of income depending on the protection sought.[169] Civil servants, the regular military, law enforcement agencies, and IRGC have their own pension systems.[172]
Trade unions
See also: Trade unions in Iran
Although Iranian workers have a theoretical right to form labor unions, there is no union system in the country. Ostensible worker representation is provided by the Workers' House, a state-sponsored institution that attempts to challenge some state policies.[173] Guild unions operate locally in most areas, but are limited largely to issuing credentials and licenses. The right to strike is generally not respected by the state. Since 1979 strikes have often been met by police action.[174]
A comprehensive law covers labor relations, including hiring of foreign workers. This provides a broad and inclusive definition of the individuals it covers, recognizing written, oral, temporary and indefinite employment contracts. Considered employee-friendly, the labor law makes it difficult to lay off staff. Employing personnel on consecutive six-month contracts (to avoid paying benefits) is illegal, as is dismissing staff without proof of a serious offense. Labor disputes are settled by a special labor council, which usually rules in favor of the employee.[168]
<snip>
Healthcare
The constitution entitles Iranians to basic health care. By 2008, 73% of Iranians were covered by the voluntary national health insurance system.[243] Although over 85% of the population use an insurance system to cover their drug expenses, the government heavily subsidizes pharmaceutical production/importation. The total market value of Iran’s health and medical sector was $24 billion in 2002 and was forecast to rise to $50 billion by 2013.[244][245] In 2006, 55 pharmaceutical companies in Iran produced 96% (quantitatively) of the medicines for a market worth $1.2 billion.[242][246][247] This figure is projected to increase to $3.65 billion by 2013.[245]
(From the economy of Iran wiki page)
In return we do this
The United States has imposed an arms ban and an almost total economic embargo on Iran, which includes sanctions on companies doing business with Iran, a ban on all Iranian-origin imports, sanctions on Iranian financial institutions, and an almost total ban on selling aircraft or repair parts to Iranian aviation companies. A license from the Treasury Department is required to do business with Iran. In June 2011, the United States imposed sanctions against Iran Air and Tidewater Middle East Co. (which runs seven Iranian ports), stating that Iran Air had provided material support to the Iranian Revolutionary Guard Corps (IRGC), which is already subject to UN sanctions, that Tidewater Middle East is owned by the IRGC, and that both have been involved in activities including illegal weapons transportation.[36] The U.S. has also begun to designate a number of senior Iranian officials under the Iranian Human Rights Abuses Sanctions Regulations. On 14 December 2011, the U.S. Department of Treasury designated Hassan Firouzabadi and Abdollah Araqi under this sanctions program.[37] In February 2012 the US froze all property of the Central Bank of Iran and other Iranian financial institutions, as well as that of the Iranian government, within the United States.[38] The American view is that sanctions should target Iran's energy sector that provides about 80% of government revenues, and try to isolate Iran from the international financial system.[39] On 6 Feb of 2013 the United States government blacklisted major Iranian electronics producers, Internet policing agencies, and the state broadcasting authority, in an effort to lessen restrictions of access to information for the general public. The sanctions were imposed to target Islamic Republic of Iran Broadcasting, which is responsible for broadcast policy in Iran and oversees production of Iranian television and radio channels. Also targeted were the "Iranian Cyber Police" and the "Communications Regulatory Authority" which the Treasury Department describes as authorities created three years ago to filter Web sites and monitor Internet behavior, while blocking Web sites deemed objectionable by the Iranian government. Currently, under American sanctions laws, any United States property held by blacklisted companies and individuals is impounded, and are prohibited from engaging in any transactions with American citizens.[40] In January 2015, the U.S. Senate Banking Committee advanced "a bill that would toughen sanctions on Iran if international negotiators fail to reach an agreement on Tehran's nuclear program by the end of June."[41]
http://en.wikipedia.org/wiki/Sanctions_against_Iran
The sanctions bring difficulties to Iran's $483 billion, oil-dominated economy.[14] Data published by the Iranian Central Bank show a declining trend in the share of Iranian exports from oil-products (2006/2007: 84.9%, 2007/2008: 86.5%, 2008/2009: 85.5%, 2009/2010: 79.8%, 2010/2011 (first three quarters): 78.9%).[48] The sanctions have had a substantial adverse effect on the Iranian nuclear program by making it harder to acquire specialized materials and equipment needed for the program. The social and economic effects of sanctions have also been severe,[49] with even those who doubt their efficacy, such as John Bolton, describing the EU sanctions, in particular, as "tough, even brutal."[50] Iranian foreign minister Ali Akhbar Salehi conceded that the sanctions are having an impact.[51] China has become Iran's largest remaining trading partner.[31]
Sanctions have reduced Iran's access to products needed for the oil and energy sectors, have prompted many oil companies to withdraw from Iran, and have also caused a decline in oil production due to reduced access to technologies needed to improve their efficiency.[citation needed] According to Undersecretary of State William Burns, Iran may be annually losing as much as $60 billion in energy investment.[52] Many international companies have also been reluctant to do business with Iran for fear of losing access to larger Western markets.[citation needed] As well as restricting export markets, the sanctions have reduced Iran's oil income by increasing the costs of repatriating revenues in complicated ways that sidestep the sanctions; Iranian analysts estimate the budget deficit for the 2011/2012 fiscal year, which in Iran ends in late March, at between $30bn to $50bn.[53] The effects of U.S. sanctions include expensive basic goods for Iranian citizens, and an aging and increasingly unsafe civil aircraft fleet. According to the Arms Control Association, the international arms embargo against Iran is slowly reducing Iran's military capabilities, largely due to its dependence on Russian and Chinese military assistance. The only substitute is to find compensatory measures requiring more time and money, and which are less effective.[54][55] According to at least one analyst (Fareed Zakaria), the market for imports in Iran is dominated by state enterprises and state-friendly enterprises, because the way to get around the sanctions is smuggling, and smuggling requires strong connections with the government. This has weakened Iranian civil society and strengthened the state.[citation needed]
The value of the Iranian rial has plunged since autumn 2011, it is reported to have devalued up to 80%, falling 10% immediately after the imposition of the EU oil embargo[56] since early October 2012,[57] causing widespread panic among the Iranian public.[53] In January 2012, the country raised the interest rate on bank deposits by up to 6 percentage points in order to curtail the rial's depreciation. The rate increase was a setback for Ahmadinejad, who had been using below-inflation rates to provide cheap loans to the poor, though naturally Iranian bankers were delighted by the increase.[53] Not long after, and just a few days after Iran's economic minister declared that "there was no economic justification" for devaluing the currency because Iran's foreign exchange reserves were "not only good, but the extra oil revenues are unprecedented,"[53] the country announced its intention to devalue by about 8.5 percent against the U.S. dollar, set a new exchange rate and vowed to reduce the black market's influence (booming, of course, because of the lack of confidence in the rial).[58] The Iranian Central Bank desperately tried to keep the value of the rial afloat in the midst of the late 2012 decline by pumping petrodollars into the system to allow the rial to compete against the US dollar.[59] Efforts to control inflation rates were set forth by the government through a three-tiered-multiple-exchange-rate;[60] this effect has failed to prevent the rise in cost of basic goods, simultaneously adding to the public's reliance on the Iranian black-market exchange rate network.[59] Government officials attempted to stifle the black-market by offering rates 2% below the alleged black-market rates, but demand seems to be outweighing their efforts.[61][62]
Sanctions tightened further when major supertanker companies said they would stop loading Iranian cargo. Prior attempts to reduce Iran's oil income failed because many vessels are often managed by companies outside the United States and the EU; however, EU actions in January extended the ban to ship insurance. This insurance ban will affect 95 percent of the tanker fleet because their insurance falls under rules governed by European law. "It's the insurance that's completed the ban on trading with Iran," commented one veteran ship broker.[63] This completion of the trading ban left Iran struggling to find a buyer for nearly a quarter of its annual oil exports.[15] Iran has sought to manage the impact of international sanctions and limit capital outflows by promoting a "resistance economy," replacing imports with domestic goods and banning luxury imports such as computers and mobile phones.[64] This is predicted to lead to an increase in smuggling, as "people will find a way to smuggle in what the Iranian consumer wants."[65] To sustain oil imports, Iran has also provided domestic insurance for tankers shipping Iranian oil.[66] Iran had hoped to sell more to Chinese and Indian refiners, though such attempts seem unlikely to succeed, particularly since China—the single-largest buyer of Iranian crude—has been curtailing its oil imports from Iran down to half their former level.[15]
http://en.wikipedia.org/wiki/Sanctions_against_Iran
It is like oil is the barrier to Democracy in Southwest Asia. Sad.
FairWinds
(1,717 posts)Your post is much too long to read, and detracts from
whatever discussion might have taken place without it.